European automaker Stellantis has posted a devastating €2.3 billion (A$2.7 billion) net loss for the first half of 2025, marking a dramatic reversal from the €5.6 billion profit recorded in the same period last year.
Company revenues fell 12.6% to €74.3 billion too, as global shipments declined by 6%.
The Franco-Italian company, which owns brands including Jeep, Ram, and Fiat, attributed the massive loss to €3.3 billion in pre-tax charges from program cancellations and platform impairments.
United States tariffs have inflicted an additional €0.3 billion impact while forcing production adjustments that reduced planned output.
North America proved particularly challenging, with shipments plummeting 25% due to tariff-related production pauses and reduced fleet sales.
Europe also struggled with a 6% decline amid product transitions.
Stellantis shares have crashed >55% in the last 12 months, trading at just $9.59/share, despite analyst price targets that suggest 32% upside potential.
The company suspended its 2025 financial guidance due to tariff uncertainty and is burning through cash at an alarming rate.
While competitors like GM and Ford face similar tariff pressures, Stellantis appears the most vulnerable due to its high import dependency on its cars.
A recovery hinges on successfully launching new products in the second half of 2025 and appointing a permanent CEO to navigate the challenging transition period ahead.
